Does the buyer need to pay any tax on top of their income?

With regards to taxation, if the buyer is a UK tax payer they would need to declare this income on their UK tax return.

If they are a non UK resident landlord they can complete an NRL1i form to apply for their rental income to be paid with no tax deducted.

income-tax-rates-and-bands

https://www.gov.uk/income-tax-rates

Therefore, you should only have to pay income at 20% on the portion above the personal allowance.

For example, if you went ahead with two units of £70,000 with 10% net income:

£15,000 income
£11,000 allowance
£4,000 taxable at 20%

= £800 tax

Does that make sense?

“Non-resident landlords can apply to receive their rent with no tax deducted on the basis that either: their UK tax affairs are up to date, they have not had any UK tax obligations before they applied, they do not expect to be liable to UK Income Tax for the year in which they apply.”

Please see the link below for further information.

http://www.hmrc.gov.uk/international/nr-landlords.htm

No VAT is payable on rental income. The rent will be paid by our lettings company. They will pay the rent to your investors designated account anywhere in the world on a quarterly basis. We will liaise with the investor to assist in the completion of the relevant HMRC forms. *Please note we cannot guarantee that the investor’s application to receive their rent with no tax deducted will be accepted.

For expert tax advice:

Shakeel Butt FCCA
Corporate & Private Client Director
WSM Advisors Limited Chartered Accountants
Connect House
133-137 Alexander Road
Wimbledon
London
SW19 7JY

Tel: +44 (0)20 8545 7624 (Direct)
Tel: +44 (0)20 8545 7600 (Switchboard)
Fax: +44 (0)20 8543 5547